The stock index KEDI30 (KEDI innovative company ESG30) created by the Korea Economic Daily rose 1.3% on the 17th. The index can be checked at the Hankyung.com data center. Reporter Huh Moon-chan
The net assets of Mirae Asset Asset Management’s ‘TIGER KEDI Innovative Enterprise ESG30 Exchange Traded Fund (ETF)’ exceeded 100 billion won. Of the 30 ETFs listed with less than 100 billion won this year, this ETF is the only one that maintains a net asset of 100 billion won or more.
According to the Korea Exchange on the 17th, the TIGER KEDI30 ETF recorded 107.5 billion won in net assets on the 13th, exceeding 100 billion won for the first time. After being listed for 10 billion won on February 8th, it has grown tenfold in size within three months.
There are 34 ETFs listed this year. Excluding four listed with more than 100 billion won, there are only two ETFs with net assets exceeding 100 billion won, the TIGER KEDI30 ETF and the TIGER NASDAQ 100 Leverage ETF. TIGER Nasdaq 100 Leverage US, listed on February 22, had net assets exceeding 100 billion won on the 1st of last month.
There are 565 ETFs listed on the Korean stock market. Among them, the TIGER KEDI30 ETF has the 110th largest net asset value. This ETF tracks the KEDI30 (KEDI innovative company ESG30) index created by the Korea Economic Daily, the only index calculation institution among domestic media companies. The index is composed of top companies in four fields: information technology (IT), future technology, platform, and bio.
The reason why the TIGER KEDI30 ETF’s net assets continued to increase even in the downtrend is believed to be because investors thought that the ETF’s stock price would rise quickly when the stock market turns upward. An official from the financial investment industry said, “It is unusual for an ETF to increase its net assets tenfold within three months of its launch. said.
Four fields including IT and future technology… Invest in innovative companies chosen by the CEO
Better than the KOSPI-tracking ETF… It is popular due to the expectation of additional revenue.
There are exchange-traded funds (ETFs) representing the markets in stock markets around the world. In the US, ‘Invesco QQQ Trust (QQQ)’, which tracks the Nasdaq 100 Index, and ‘SPDR S&P 500 ETF Trust (SPY)’, which tracks the S&P 500, are considered representative products.
In Korea, ‘KODEX200’ and ‘TIGER200’, which track the KOSPI 200 index, have been known as market representative products. It has been common for investors to buy these ETFs if they want to safely track market returns. Recently, it is evaluated that the ‘TIGER innovative company ESG30 ETF’ is emerging as a substitute for the KOSPI 200-tracking product. This is because the KEDI30 (KEDI Innovative Companies ESG30) Index, which consists of 30 net innovative companies, can expect a higher return than the KOSPI 200, which simply lists 200 companies in order of market capitalization.
○2nd place in personal net purchases
Since the TIGER KEDI30 ETF was listed on the stock market on February 8th, individual investors have net bought 50.555 billion won worth of this ETF until the 13th of this month. During this period, only KODEX200 (103.3 billion won) was the only ETF with a higher individual net purchase than the TIGER KEDI30 ETF among domestic stock ETFs (excluding leverage and inverse).
Like the KODEX200, the TIGER200, which tracks the KOSPI 200, ranked third in terms of individual net purchases. It sold 39.71 billion won worth of net purchases, which was 10 billion won less than the TIGER KEDI30 ETF.
The total net assets of the TIGER KEDI30 ETF, listed at 10 billion won, increased to 107.5 billion won. As it has gained popularity among individual investors, recently institutional investors such as banks have also started to purchase this ETF.
An official from the financial investment industry said, “Recently, investors tend to buy ETFs that track the KEDI30 index to track market returns like the KOSPI 200 ETFs. It is becoming more and more popular,” he explained. On the 17th, the KEDI30 index rose 1.30%, exceeding the rise rates of the KOSPI 200 index (1.04%), the KOSPI index (0.92%) and the KOSDAQ index (1.14%).
○Composed of companies recognized by CEOs
The biggest difference between the KOSPI 200 index tracking ETF and the TIGER KEDI30 ETF is the method of stock composition. The KOSPI 200 index is made by listing the companies listed on the stock market in order of market cap and selecting the top 200 companies. It has no choice but to include companies that are large but cannot keep up with the changes of the times.
The KEDI30 index is an ESG (environmental, social, and governance) evaluation jointly developed by the Korea Economic Daily, Yonsei University Business School Shared Management Research Center, and IBS Consulting when more than 130 CEOs of major domestic companies first select 50 innovative companies. The event is structured by applying the model and finally selecting 30 places. Only companies with growth potential recognized by CEOs playing at the forefront of the industry are included. Since the composition of stocks is changed through a survey every year, companies with low innovativeness are inevitably excluded from the index.
The KEDI30 index consists of companies in four fields: information technology (IT), future technology, platform, and biotechnology. In the IT field, Samsung Electronics, SK Hynix, LG Innotek, and Reno Industrial are included. Future technologies include Hyundai Motor, POSCO Chemical and Hyosung Advanced Materials Soulbrain, and platforms, such as Naver, Kakao, and SK Telecom Hive. In the bio sector, Samsung Biologics, Celltrion, Legochem Bio, and Yuhan were included. It is evaluated that not only large companies but also small and medium-sized KOSDAQ listed companies are included in the index, thus capturing both diversity and future growth potential.
Reporter Lee Tae-hoon [email protected]
